Bitcoin according to Gartman – $5k trading is on the cards
Even though Bitcoin, and thecrypto industry in general, has taken positive steps towards mainstream integration, it will always have its critics. Achievements such as massive growth and adoption by major financial institutions seem to do nothing to quiet the bubble chants and crypto cynics.
CNBC, who seems to have taken a decidedly aggressive stance against Bitcoin, recently sat down with Dennis Gartman, a former Wall Street trader and the creator of The Gartman Letter, and he had this to say:
“I’m very bearish on Bitcoin, I think it’s one of the silliest ideas I’ve heard in a long time.”
In addition, he added that it was just:
“some sort of an asset that has no real asset value behind it.”
Because of this, he went on to explain:
“I won’t trade it. I won’t be long of it. I won’t be short of it.”
Gartman also believes that the world’s most popular digital currency will trade below $5k. This would be quite a drastic drop as it reached highs of $20k just last month, and is currently trading at just under $14k at the time of writing this article.
The obvious benefits and advantages associated with decentralized digital currencies have turned the tide in the financial industry, by converting Bitcoin from a fringe benefit shrouded in doubt into a highly coveted financial asset.
However, well-established institutions who are perhaps set in their ways are still resistant to Bitcoin’s disruptive nature. This could change though. Vocal crypto critics like Goldman Sachs and even JPMorgan Chase seemed to have swallowed a healthy piece of humble pie as they too see the potential of the industry.
There are still some pessimists though, and it’s not just companies. Governments in certain countries are also against Bitcoin and actually view the entire crypto revolution as just a craze that will blow over eventually. Indian authorities have even referred to cryptocurrencies as “ponzi schemes”.
Countries such as China and Russia have taken a hard stance on the industry, with the former even prohibiting ICOs and exchanges. Other countries like South Korea have also developed rules and processes for trading in digital currencies, with the crypto community in the country actually seeing it as the right step in the direction of mainstream adoption. Exchanges such as Bithumb even believe that these regulations will open up the crypto market to new investors.
Even though Gartman may believe that Bitcoin is on its way out, other veteran investors such as Michael Novogratz believes that the only way is up. The latter has predicted that the currency could even trade as high as $50k by the end of this year.